Japanese yen. Photo by Qing Luo on Pexels.com
Japanese financial markets opened lower on Thursday, with the yen, government bonds, and equities all declining after a holiday break, as geopolitical tensions in the Middle East weighed on investor sentiment.
The yen slipped to around 160.50 against the US dollar in early trading, its weakest level in roughly one year and nine months.
By midday, the dollar was quoted at 160.34 to 160.34 yen, up from 159.51 to 159.54 yen recorded before the holiday.
The euro traded at 1.1666 to 1.1667 against the dollar, slightly weaker than previous levels, while strengthening against the yen to 187.08 to 187.09.
In the bond market, yields on 10-year Japanese government bonds climbed to 2.520 percent, marking the highest level since February 1999 as prices moved inversely lower.
At the Tokyo Stock Exchange, the Nikkei 225 index ended the morning session down 612.84 points, or 1.02 percent, settling at 59,304.62.
More than 80 percent of listed shares on the Prime market declined during morning trading, reflecting broad-based weakness.
Market activity was influenced by safe-haven demand for the US dollar, as investors reacted to uncertainty over peace negotiations between the United States and Iran amid rising tensions in the Middle East.